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The euro extended its upward trajectory against the Turkish lira on Thursday, with the exchange rate surpassing 45 for the first time. The sharp rise reflects a combination of a weakening U.S. dollar, growing geopolitical risk, and heightened volatility in global markets.
As of early Thursday, the EUR/TRY rate climbed to 45.46, marking a daily gain of nearly 1%.
On a monthly basis, the euro has risen by more than 4%, while its annual appreciation exceeds 30%. The latest figures show that the euro has already overshot the second-quarter forecast of around 44.64, as estimated by data provider Trading Economics.
The euro’s rapid appreciation comes in the wake of reports that the United States is preparing to evacuate its embassy in Baghdad, Iraq. At the same time, Israel’s reported preparations for military action have added further stress to global markets.
Amid these developments, the euro has also gained ground against the U.S. dollar.
The EUR/USD exchange rate rose over 0.5% on Thursday to reach 1.1535, extending its broader gain of more than 4% in recent weeks. This trend is mainly linked to increasing trade tensions, fueled by protectionist policies pursued by U.S. President Donald Trump.
Washington’s recent moves to implement steep tariffs on key trading partners in April, including the European Union and China, have disrupted supply chains and contributed to growing market instability.
These actions—aimed at narrowing the U.S. trade deficit—have in turn undermined investor confidence in the dollar, driving demand toward alternative reserve currencies such as the euro.
As global risk sentiment remains fragile, analysts suggest the euro could retain its strength in the near term, particularly if trade frictions and geopolitical uncertainty continue to weigh on market sentiment.
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